Crucial 2011 Annual Report Download - page 6

Phase Change Memory ("PCM")
PCM is a new memory technology that combines the attributes of NOR, NAND and RAM, simplifying memory and producing more
capabilities within a single chip. PCM is bit-alterable, non-volatile memory featuring fast read/write/erase speeds that is highly scalable to lower
line-width technologies. We currently offer both parallel and serial interface PCM products and expect that the market for these products will
increase significantly in the next several years.
Partnering Arrangements
The following is a summary of our partnering arrangements as of September 1, 2011:
5
Partner(s) Approximate Micron Ownership Interest Formed/ Acquired Product Market
Consolidated Entities:
IMFT (1) Intel Corporation
51
%
2006
NAND Flash
IMFS (1) Intel Corporation
86
%
2007
NAND Flash
MP Mask (2) Photronics, Inc.
50
%
2006
Photomasks
Equity Method Investments:
Inotera (3) Nanya Technology Corporation
30
%
2009
DRAM
MeiYa (3) Nanya Technology Corporation
50
%
2008
DRAM
Transform (4) Origin Energy Limited
50
%
2010
Solar Panels
Aptina
(5) Riverwood Capital LLC and TPG Partners VI, L.P.
35
%
2009
CMOS Image
Sensors
(1)
IM Flash:
We partner with Intel Corporation ("Intel") for the design, development and manufacture of NAND Flash products. In
connection therewith, we have formed two joint ventures with Intel to manufacture NAND Flash memory products for the exclusive
benefit of the partners: IM Flash Technologies, LLC ("IMFT") and IM Flash Singapore LLP ("IMFS") (collectively, "IM Flash"). As of
September 1, 2011, we owned an approximate 51% interest in IMFT and an approximate 86% interest in IMFS with the remaining
interests held by Intel. Our ownership interest in IMFS increased from 51% prior to the second quarter of 2010 to 86% on September 1,
2011 as Intel did not match our capital contributions. On September 26, 2011, Intel participated in a capital call of IMFS by contributing
$131 million. After that capital call, our ownership interest in IMFS was reduced to 82%. The partners share the output of IM Flash
generally in proportion to their investment in IM Flash. We sell NAND Flash products to Intel through IM Flash at long-term negotiated
prices approximating cost. We generally share product design and other research and development costs equally with Intel. In 2011, IM
Flash began ramping production at a new Singapore wafer fabrication facility and we expect that output from this facility will
significantly increase our overall NAND Flash production in 2012. (See "Item 8. Financial Statements and Supplementary Data – Notes
to Consolidated Financial Statements – Consolidated Variable Interest Entities – NAND Flash joint ventures with Intel" note.)
(2)
MP Mask:
We produce photomasks for leading-edge and advanced next generation semiconductors through MP Mask Technology
Center, LLC ("MP Mask"), a joint venture with Photronics, Inc. ("Photronics"). We and Photronics also have supply arrangements
wherein we purchase a substantial majority of the reticles produced by MP Mask. (See "Item 8. Financial Statements and Supplementary
Data – Notes to Consolidated Financial Statements – Consolidated Variable Interest Entities – MP Mask Technology Center, LLC."
note.)